The FAME II subsidy has distributed ₹5,228 crore in subsidies for EV two-wheelers, and three-wheelers, according to the Ministry of Heavy Industries (MHI). As part of its year-end assessment for 2023, MHI revealed the information and mentioned that as of December 1, 2023, the subsidy has benefited the sales of 11,53,079 electric vehicles.
The ₹10,000 crore, five-year subsidy known as Faster Adoption and Manufacturing of Electric Vehicles in India Phase II was first announced in April 2019. The expiration date is March 31, 2024. Of the ₹10,000 crore, roughly ₹2,000 crore went towards electric two-wheelers, which were almost fully used. As a result, the government had to set aside an extra ₹1,500 crore to subsidize electric motorbikes and scooters.
EV three-wheeler market
In recent years, electric three-wheelers have taken the place of ICE three-wheelers in various markets. With enormous development potential in this market, startups like Euler Motors, Altigreen, Piaggio, and others have contributed significantly to the quicker adoption of e-three-wheelers. Additionally, the Ministry of Heavy Industries disclosed that 3,037 e-buses have been deployed thus far out of 3,390 that various state and central transport firms have placed supply orders.
Additionally, Convergence Energy Services Ltd. is deploying 3,472 e-buses. According to MHI, various STUs and CTUs have placed a total of 3,390 supply orders for electric buses, and CESL (PTI) is also deploying an additional 3,472 e-buses. Additionally, MHI disclosed that 148 EV public charging stations have been put into service. On March 28, 2023, PSU oil marketing companies received ₹800 crore under the FAME II initiative to build up 7,432 public fast charging stations throughout the nation.
To increase auto and auto component manufacturing in India, the government recently unveiled the PLI Scheme. According to MHI, the PLI Auto Programme was executed by 85 enterprises, of whom 18 were under the Champion OEM and 67 were under the Component Champion. It is anticipated that the initiative will draw in new investments totaling ₹67,690 crore.
